Blue Water Sails, Inc. (BWS) manufactures sailcloth used by sailmakers that produce sails for sailboats. BWSs sailcloth is the conventional polyester-based sail material and is used widely in recreational boating. Sailmakers throughout the world use BWSs sailcloth. The manufacture of sailcloth has a small number of processes, and BWS integrates them carefully so that there is very little Work-in-Process Inventory. The product is measured in yards of cloth, which is prepared in rolls 42 inches wide. Because it has little Work-in-Process Inventory, BWS also uses backflush accounting to simplify the accounting for its operations. BWS has the following information for the most recent accounting period. The beginning inventory of polyester fiber was $137,700, and the ending inventory was $168,400.

Polyester fiber purchased	$	674,500
Conversion cost incurred	$	1,595,000
Direct materials standard cost	$	4.10	per yard of cloth
Conversion standard cost	$	8.25	per yard of cloth
Units produced		153,500	yards of cloth

Show the entries for manufacturing costs incurred or applied, completion of 153,500 yards of product, and the closing entries

1. To record direct materials purchase

2. Record conversion costs incurred

3. Record finished goods for the standard cost of the 153,500 yards produced.

4. Record the closing of the two conversion costs accounts.

5. Record the closing of the actual usage of inventory.